You can switch car insurance in the middle of a policy, but many insurance companies will not help you cancel your previous car insurance policy. Here’s what you need to know about switching car insurance:
- Ask your new insurance agent if they can cancel your previous policy.
- If not, contact your old insurer to cancel, and update the lender if you have one.
- Verify that you have no lapse in insurance.
Ask your new agent to cancel your policy
When you’re buying a new auto insurance policy, ask the agent if they can help cancel your old plan. Many major insurers won’t cancel your old policy if you buy directly, but independent agents or brokers may assist.
If you buy online, look for cancellation information during signup of your new policy.
If your new insurer can’t help, contact your current insurer directly to cancel.
Here are a few things to note:
- If your new insurance company requires proof of prior insurance, they may be able to contact your old provider for it, but in some cases you’ll need to send in the proof of coverage yourself.
- It’s always a good idea to request confirmation of your cancellation in writing.
- If you’re financing a car, check with your new insurance company to make sure they’ll inform the lenders of the change in coverage. If not, you’ll need to contact your lender and update them.
Plan your cancellation date carefully to avoid lapse
Ideally, your new policy should go into effect the same day your old one ends. That will help you avoid a gap or an overlap in coverage:
- A gap in coverage, known as an insurance lapse, can leave you unprotected if you’re in an accident. It also leads to a higher premium when you buy a new car insurance policy.
- An overlap in coverage can be complicated if you get into an accident while both policies are in effect.
When should you cancel your car insurance?
Here are a few reasons it’s a good idea to switch insurance companies:
- You found a lower rate somewhere else.
- You’re unhappy with the company’s coverage options or customer service.
- You can save on your insurance costs by bundling your homeowners insurance (or renters insurance) with your car insurance.
- You’re moving to a state where your current insurer doesn’t operate.
Before you switch, be sure to shop for quotes with multiple insurers to find the best rate on the coverage you need.
Xuyun Zeng is a writer and editor with a wide-ranging content background including tech, journalism, cars and health care. After graduating with highest honors in journalism, Xuyun led a newspaper to win eight awards, helped start an award-winning film industry podcast and has written over a hundred articles about cars repair, state laws and insurance. Prior to joining Jerry, Xuyun worked as a freelance SEO consultant with a mission to create the best content that will help readers and grow organic traffic.
Kevin Berry is the Senior Director of Content at Jerry and has been working in the digital content space since 2011 across the car insurance/repair, personal finance, travel and sports industries. Prior to Jerry, Kevin was a content team lead at NerdWallet overseeing the Multimedia Production and Travel Rewards teams. Previously, he worked for NBC Sports, Comcast Cable and Nike. He has a Master`s Degree from Arkansas State and a Bachelor`s from Oregon State University.
